If you could make 5% monthly, everyone would be doing it and would become very wealthy. I recently bought some shares of MCP at $35 and sold the Oct $37.50 calls for $3. Finally last Friday the stock was called away as MCP closed slightly above the strike. I made a terrific percentage return for one month, but while I waited MCP pulled back to around $30 at one point. Had the market not rallied, I would have lost a significant amount of money. The safer companies typically are not volatile enough to have a decent premium. So, IMO ,keep plenty of cash available to pick up bargains. I suggest you find a few stocks you like and scale into them.